Last Friday, USA Rare Earth (USARE, NASDAQ: USAR) officially debuted on the Nasdaq stock exchange under the ticker symbol “USAR.” CEO Joshua Ballard and Chairman Mike Blitzer rang the opening bell, marking a new chapter for the company dedicated to building a domestic rare earth supply chain in the United States.
On its first day of trading, USARE’s stock surged by 70%, closing at $18.55, with a market capitalization of $91.3 million.
USARE’s core asset is the Round Top rare earth deposit in Texas. According to the company, the deposit contains 15 of the 17 rare earth elements, with a strong enrichment of heavy rare earths such as dysprosium, terbium, gallium, and beryllium. In 2021, USARE stated that it is poised to produce nearly half of the critical minerals included in the U.S. Geological Survey’s (USGS) list of raw materials deemed essential for national security and economic stability.
A day before its listing, USARE announced the completion of a merger with special-purpose acquisition company Inflection Point Acquisition Corp (NASDAQ: IPXX). The deal aims to establish one of the largest magnet production facilities in North America. Currently, the only operating rare earth mine in the U.S. belongs to MP Materials at Mountain Pass, California, which primarily produces separated rare earth products like praseodymium-neodymium oxide, cerium, and lanthanum.
In January 2025, USARE successfully produced a sample of dysprosium oxide with a purity of 99.1%, which it lauded as a significant breakthrough in domestic rare earth production. That same month, the company’s newly-built facility in Stillwater, Oklahoma, produced its first batch of sintered permanent magnets, laying the groundwork for large-scale production.
CEO Joshua Ballard highlighted the urgency of building a domestic supply chain for rare earth minerals and magnets amid recent tariff policies and rising geopolitical tensions. He underscored the importance of securing these resources for critical technologies, including national defense applications.
For the next 12 months, the company plans to focus on completing its magnet facility, with a targeted annual production capacity of nearly 5,000 tons. Over the past three years, USARE has made significant advancements in processing technology, including the separation of all rare earth elements over the last 12 months. The company uses heap leaching to extract bulk minerals, followed by its proprietary “continuous ion exchange” technology to achieve precise separation of rare earth elements. USARE is now transitioning from the laboratory phase to pre-feasibility studies, aiming to commercialize its resources within the next 12 to 24 months.
Regarding the buzz around rare earth deposits in Ukraine and Greenland, Ballard commented, Even if these resources exist, their development could take decades. Meanwhile, the U.S. has an unparalleled strategic opportunity. We have high-quality deposits, and we need to accelerate their development to gain a competitive advantage.
Analysts have noted that USARE’s rapid stock market debut and strong first-day performance reflect the capital market’s optimism about building a self-sufficient rare earth supply chain in the U.S. With global supply chains undergoing significant changes, localized resource development and the manufacturing of high-value-added products are expected to become key areas of competition in the industry.
